The Federal Reserve has cut interest rates by 25 basis points, bringing the new target range to 3.75%-4%. This marks another rate reduction announced by the Fed in the early hours of October 30, Beijing time.

Coming less than two months after the previous cut, this latest adjustment raises the question: Why now?

The answer lies in employment data. Although the U.S. September nonfarm payroll report was delayed, the Fed's mid-October "Beige Book" revealed sluggish labor demand across all regions and industries, coupled with rising prices. Market analysts widely believe this rate cut aims to cushion employment and consumption.

Don’t assume the Fed’s decision is irrelevant to you. Given the dollar’s dominant role in global finance, this move will ripple across economies—including China’s businesses and individuals.

**Impact on Businesses** Fed rate cuts typically drive up international commodity prices. For Chinese companies in sectors like chemicals, metal processing, and aviation logistics, this could mean higher costs for imported raw materials. Firms heavily reliant on overseas energy and bulk resources should pay close attention to rising cost risks.

**Impact on Individuals** A weaker dollar following the Fed’s cut may boost the yuan’s relative value, reducing expenses for studying abroad, overseas shopping, and travel. If you anticipate needing dollars, consider exchanging currency while rates are favorable.

Additionally, lower U.S. Treasury yields could diminish returns on dollar-denominated assets, including USD-linked wealth management products. Investors holding such assets may want to consult bank advisors on adjustments.

Lastly, sustained dollar weakness may redirect global capital flows toward emerging markets, potentially increasing attention on Chinese assets—a positive signal for the country’s capital markets.